Losses grow for Cannon Express

Nov. 19, 2002
Troubled truckload carrier Cannon Express lost $3.13 million on revenue of $18.8 million in the first quarter of the 2003 fiscal year. Cannon's losses include charges designed to cut down on operating expenses. That includes the cost of adopting a new liability insurance policy as of November 1, which should save Cannon approximately $2.8 million per year, said CEO Bruce Jones. Jones added that the

Troubled truckload carrier Cannon Express lost $3.13 million on revenue of $18.8 million in the first quarter of the 2003 fiscal year.

Cannon's losses include charges designed to cut down on operating expenses. That includes the cost of adopting a new liability insurance policy as of November 1, which should save Cannon approximately $2.8 million per year, said CEO Bruce Jones.

Jones added that the Springdale, AR-based company's fleet is under-utilized because of weak freight demand and a shortage of qualified drivers. He said Cannon plans to sell approximately 200 trucks and 315 trailers in order to increase the utilization and profitability of its equipment.

In an effort to cut costs, Cannon closed its logistics and intermodal operations in the fourth quarter of fiscal 2002. It also said it would bring routine vehicle maintenance in-house to its Springdale shop to reduce outside costs.

About the Author

Sean Kilcarr | Editor in Chief

Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

 

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